The Middle East is emerging as one of the biggest growth markets for outsourcing. Organizations seeking cost and efficiency savings combined with greater continuity and risk management are switching to outsourcing as a method of managing their back-office business operations.
MENA outsourcing revenues are predicted to hit US$2.69 billion by 2016 (Frost & Sullivan). Across the region, commitment to outsourcing can be observed with the Kingdom of Saudi Arabia forecasting that more than 50% of its ICT needs will be fulfilled by outsourcing companies by 2016. In the UAE, the dedicated Dubai Outsource Zone (DOZ) has announced a 15% growth rate throughout 2012.
Successfully managing an outsourcing contract requires customers to include the right governance tools and mechanisms in their contracts and then use those tools appropriately. Click here to read more about the types of governance tools.
Contract tools provide the customer with leverage in managing the outsourcing contract. Customers should use these tools knowingly with a view to the potential impact on the supplier relationship.
Download the “Using Contract Tools” whitepaper and learn how to effectively manage outsourcing contracts.
Understanding how to use contract tools can optimize the outcome of the relationship for the customer, who will be empowered to:
- Manage the supplier relationship to ensure issues are resolved quickly and opportunities are maximized.
- Maximize savings as profitability of the transaction is determined by performance.
- Handle issues and escalations to avoid disputes.
- Use customer leverage to ensure contractual commitments are met.
- Manage unexpected contractual change with reasonable pricing impact.
- Monitor service performance and audit status information provided by the supplier.
- Maintain contractual and operational control to ensure supplier compliance.
- Work constructively with third parties to resolve any issues that arise.
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